GOVERNMENT TOOLS
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Economic Spotlight on the Inner West
Key highlights
The Client
Inner West Region
Challenge
The local council needed an in-depth economic analysis of the region to support an update of their Economic Development Strategy.
Our Method
.id performed a detailed analysis of the local Inner West economy. The report focuses on the period from 2019 to 2022 to assess recent economic performance, growth drivers, competitive advantages and barriers to growth.
Highlights
id presented an economic story of the Inner West region that covered a detailed analysis of key strategic industries, mismatch in resident and local worker's jobs and qualifications, and diversity.
Results
The outcome for the council is evidence-based insights that informed and supported the Council economic decision making, focusing on industry growth and diversification.
Economic Spotlight on the Inner West
In 2023, our consultants conducted an Economic Health Check for the Inner West region's economy as council looked to explore recent trends and identify what factors or industry changes were driving the economy. Here's what we found.
Economic rebound and growth
The Inner West experienced strong economic and job growth from 2019 to 2022, outperforming surrounding Metro LGAs and reaching levels well above pre-COVID-19 by June 2022. However, the Delta lockdown in 2021 caused significant disruption before the quick rebound.
Economic activity
Unemployment dropped below the Greater Sydney average, supporting local spending. The new construction of the Marrickville Metro development helped to significantly boost economic activity and support current residents' commuting in and out of the area.
Industry specialisation and growth
Inner West saw job growth in retail and construction sectors due to major projects. Specialised industries like retail, construction, repair and maintenance, furniture manufacturing, and creative arts grew faster than the Greater Sydney average, contributing to export income and overall economic growth.
Demographic and socio-economic factors
A high-income and highly qualified resident base supports demand for local businesses and growth in knowledge-based services. However, population decline and mismatched local jobs lead to significant commuting in and out of the area.
Future outlook
Net overseas migration is projected to increase, potentially boosting population and supporting local businesses, especially in tourism and hospitality. Remote working trends may benefit local retail and hospitality, though challenges such as supply chain disruptions, rising prices, and cost of living pressures may impact medium-term economic growth.
Want to learn more?
Our economic consulting team is engaged by councils and organisations across Australia to provide in-depth insights behind the data. Our experts draw on their knowledge of urban and regional economic development and years of experience working with decision makers across Australia. This information is used by councils to develop evidence based economic development strategies, investment attraction plans and support grant applications.
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